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China's Chamco Auto's sport utility vehicle is displayed at the North American International Auto Show in Detroit, Sunday, Jan. 13, 2008. (AP / Carlos Osorio) The Geely exhibit is seen at the North American International Auto Show in Detroit, Sunday, Jan. 13, 2008. (AP / Carlos Osorio) China's Chamco Auto's sport utility vehicle is displayed at the North American International Auto Show in Detroit, Sunday, Jan. 13, 2008. (AP / Carlos Osorio)

China gearing up for North American auto market

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Date: Mon. Jan. 14 2008 10:05 PM ET

Chinese automakers are getting ready to crack the North American market -- with price as their main selling point.

At the North American International Auto Show in Detroit, four Chinese carmakers and an importer are showing off their best models.

Two years ago, only one Chinese manufacturer was at the show.

But just as the Japanese and Koreans before them, quality may be an issue early on, says Toronto-based auto analyst Dennis Desrosiers.

"I'm totally underwhelmed with the product in terms of fit, finish, power, ergonomics, design, that passes the muster for North America," he told CTV News. "It probably is adequate enough to fill a role as a used-car substitute."

Still, with more than two million Canadians buying a used car last year, a new car in the same price range may be a niche that the Chinese can exploit.

"They have one thing and one thing only to sell -- and that's price," said Desrosiers.

Some Chinese car makers believe their new cars could sell for as little as $6,000.

China America Co-operative Automotive Inc. (Chamco) importers is planning to sell 15,000 vehicles in Canada. The vehicles, a pickup truck and an SUV, are expected to retail for less than $15,000.

"It would be a used-car buyer who would be able to buy a new car, with a new car warranty, for the same as he would pay for the used that he was consideringm but there will be some new car buyers that will consider the product as well," Chamco's Tom Telfer told CTV News.

The other company looking to sell cars in Canada is Geely.

Even if the Chinese don't see a lot of sales, they could put pressure on other manufacturers to lower prices -- which would end up helping consumers.

"GM, Ford, Chrysler, Honda, Toyota are incredibly intense competitors," said Desrosiers. "They would respond."

Canadian consumers will have to wait a while before Chinese cars actually hit showroom floors.

The first models could be in select regions of Canada as early as 2009 but coast-to-coast sales are likely still five years away.

With a report from CTV's David Akin and files from The Associated Press

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